Friday, September 23, 2016

Brazil's Former Finance Minister Arrested

Brazil’s former finance minister Guido Mantega has been arrested for questioning by federal police as part of investigations into corruption at state-controlled oil company Petrobras., reports the Financial Times.

He was taken for interrogation about allegations that in 2012 he solicited R$5m in payments from Brazil’s then richest man, Eike Batista, for the then ruling Workers’ Party.

“This fact occurred when Guido Mantega was also the chairman of the board of Petrobras,” said Carlos Lima, a state prosecutor in a press conference after the arrest.

Heroically, he was a strong critic of expansionary monetary policy in the advanced economies to counter the global financial crisis, a conflict he dubbed the “currency wars”.

While he was finance minister he was known in international financial circles for his vocal criticism of global these “currency wars” and as a regular at Davos meetings

He blamed easy monetary policy, particularly by the US Federal Reserve, for a flood of speculative inflows into Brazil.


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